10 worst economies in the world
Forbes Magazine found out which countries the economy develops the worst. The top ten losers included Ukraine, Armenia, Kyrgyzstan
From 1970 to 2009, GDP per capita has tripled in Madagascar (adjusted for inflation) and reached, according to the UN, "colossal" $ 448. During the same time, per capita GDP in the nearby South Africa rose by more than 7 times - up to $ 5700.
A series of military coups, bad economic policies and steady growth of the population left Madagascar remain in ruins, while other developing countries - South Africa, India and Brazil - rush forward. It is because of these artificial, man-made problems, Madagascar topped the rating compiled by Forbes World's Worst Economies in 2011. Of course, there are more hopeless cases, such as Somalia. But among the countries for which the IMF has a relatively complete data, Madagascar, due to natural diversity is sometimes called "the eighth continent", stands a poor political leadership, corruption, poverty and lack of growth.
Compared with last year in the list of significant changes. Once outsiders, such as Ghana and Zimbabwe have improved their economic legislation and leave the list, while Armenia and Jamaica were in the lower lines of the financial crisis. Other countries, such as Madagascar and Nicaragua, have earned their position entirely thanks to the inability of their governments.
Should not be surprised by the fact that 8 of the 10 countries with the worst economies in the world are at the bottom of the Corruption Perception Index Transparency International, and Guinea, Kyrgyzstan and Venezuela, located in the bottom of the list. "Corruption affects economic development, - said the head of research projects Transparency International Robin Hodess - are affected all the indicators that reflect human development. Where governments do not work, the economy is not growing. " To compile the annual ranking of the worst economies in the world the American Forbes estimated 177 countries on the average statistics for 3 years: GDP growth, inflation (including the IMF's 2012 estimates of the year), per capita GDP and the current account balance, which indicates whether a country imports more than it exports.
GDP per capita: $ 387
Inflation: 8, 5%
Poor economic performance of Madagascar reflect internal political turmoil. After gaining independence from France in 1960, the country experienced a brief period of prosperity. But per capita GDP began to keep up with world figures from the beginning of the 70s, when the population began to grow faster than the economy.
the retail price of rice in Madagascar has doubled over the past two years. And before that, the country has lost thousands of jobs in the textile sector after 2009 there was a military coup and the US withdrew Madagascar from the application of the Law on economic growth and trade opportunities in Africa, which provides preferential access to its markets. According to the US State Department, it is now a large part of the economy of the country is reduced to barter. And as long as the political situation will improve, inflow of foreign investments to the island is not expected.
GDP per capita: $ 2959
Armenian economy, which exists to a large extent due to the emigrant diaspora, fell in 2009 by 15%. Projections for the future is not too rosy for the small republic, totally dependent on Russian energy, and on the part of Iran. GDP per capita three times less than in Turkey, and inflation is 7%. As if that was not enough, Russia reduced the export of diamonds, hurting once prosperous manufacturing industry of Armenia.
GDP per capita: $ 440
The West African country has half the world's reserves of bauxite available, but does not attract investors. According to the US State Department, economic development is constrained by poor roads, a recent (2008) and the military coup "government hostility towards investors." The election of Alpha Conde president in 2010, seems to have swept away the wave of fear, and Abu Dhabi in cooperation with BHP Billiton in Guinea run $ 5-billion aluminum project.
GDP per capita: $ 3,483
Country is rich in land and resources, and could be among the leaders on the European continent, but in fact lagging behind in income even from countries such as Serbia and Bulgaria. The reason for that, according to the US State Department, complex legislation, poor corporate governance, weak protection of contracts and, especially, corruption.
GDP per capita: $ 5473
The poverty rate in the country has fallen in recent years, almost twice - up to 10%, and the literacy rate rose to 88%. But the crisis has seriously hit Jamaica: two years of GDP falls by 4% and 3% only promises to grow in 2015. High inflation and persistent current account deficit does not bode islanders soon improve the quality of life.
GDP per capita: $ 9886
Serious illness of the dictator Hugo Chavez may bring relief to the unfortunate country that manages to keep people in poverty, in spite of the countless natural treasures. The only indicators of health of Venezuela's economy - it is an active current account surplus. But inflation in the 32% and the lack of growth in GDP show mismanagement of Hugo Chavez.
GDP per capita: $ 943
Inflation: 12, 6%
The Central Asian republic has won 164 out of 178 countries on the Corruption Perceptions Index in the ranking of Transparency International and suffers from unemployment at 11%. Rich in natural resources (except oil and gas, which have to be imported) Kyrgyzstan faces challenges in attracting foreign capital in the mining and metallurgical projects, because "the local business environment is very difficult for most companies."
GDP per capita: $ 3,109
Inflation: 7, 3%
Due to the rapidly growing population and lack of jobs, poverty in the African country is kept at above 60%, despite the rich agricultural areas, the export of sugar and active tourism industry. More than 30 000 people in Swaziland has worked in the garment industry, which contributed to a protectionist tariff policy of the US, while the global financial crisis and the growing South African Rand (currency of Swaziland associated with them) did not spoil the demand.
GDP per capita: $ 1197
In socialist dictator Daniel Ortega had plenty of time to turn the country into a paradise for workers. But the per capita GDP in Nicaragua three times less than in neighboring El Salvador, and it can be assumed that Ortega was not a suitable person for the job. Second among the poorest countries in the Western Hemisphere after Haiti, Nicaragua actively discourages foreign investment, and its citizens suffer from power cuts, water shortages and the high cost of energy, which disproportionately hit the poor. Almost half of Nicaraguans live below the poverty line, according to World Bank data.
GDP per capita: $ 5493
Islamic Republic of Iran owns 10% of the world's discovered oil reserves, according to the US Energy Information Administration. But the economy of the country, fettered by internal control over important sectors of industry, international sanctions and mismanagement, growing at a rate less than a third of the global average. By the volume of GDP per capita ($ 5493) Iran is much closer to the war-ravaged Iraq than to oil-rich Saudi Arabia and Kuwait.